Starting or creating a family office
What Should a Family Do If Its First Hire Is Not Working Out?
Short answer. Address the problem early and use the written role and performance expectations as the basis for a candid discussion. Identify whether the issue is skill, support, authority, or fit, agree on specific changes and a review point, then decide whether to retain, redesign, or end the role through the proper process.
If the first hire is not meeting the office's needs, address it directly and use the agreed duties and expectations to guide the conversation. Delaying a difficult discussion can increase frustration on both sides. First establish what is not working, what evidence supports that view, and whether the office has given the employee the authority and support required to do the job.
Identify the Cause Before Deciding
Compare the employee's work with the job description, goals, and responsibilities. Determine whether the gap comes from missing skills, unclear instructions, insufficient resources, conflicting direction from family members, or a mismatch between the role and the office's needs. Ask the employee for their view and listen for issues the family may have missed.
A family may have hired too early or defined the role too broadly. A disciplined talent process helps the office revisit the original requirements and assess whether the person is suited to the actual work. If priorities have changed, clarify the job before evaluating the employee against a moving target.
Agree on a Corrective Plan
Meet privately with the employee and describe the specific gaps in plain terms. Agree on the results expected, the support or training available, and a date to review progress. Put the plan in writing so both sides understand the next steps. One supervisor should own the process, even if other family members have input.
Give the employee enough authority to meet the expectations. If family members continue to bypass the manager or send contradictory instructions, fix that operating problem. The office leader needs clear decision rights and a way to escalate disagreements. An advisory board or committee may provide an appropriate forum for questions that should not be settled through informal family pressure.
Make a Clear Decision After Review
At the agreed review point, assess progress against the written plan. If the employee is improving, continue with clear goals and regular feedback. If the person has strengths that fit a different need, consider whether a revised role makes sense for the office. Do not preserve a position simply because ending it would be uncomfortable.
If the role is not working and the gap remains, follow the employment terms and proper internal process. Document the reasons and decisions. Consult your attorney or CPA when employment, tax, or entity details require professional guidance. Keep the conversation respectful and private, especially when the employee is also a relative.
Learn From the First Hire
Review what the office can improve in its hiring and management process. Did the family define the need clearly? Were the responsibilities realistic? Did the employee receive enough authority, information, and feedback? Use those answers to improve future decisions. The compensation estimator can also help revisit whether the role and its cost fit the office plan.
A first hire can reveal where the office's structure is incomplete. Treat the issue as both a personnel decision and an opportunity to make the office's expectations clearer. The goal is to make a fair decision that supports the family's needs and respects the employee.
There is no reason to be less structured when it comes to creating an SFO than the family was when it created its business.
Sources: The Single Family Office. Informational only, not financial, legal or tax advice.